The contribution of affordable housing, priced at 45 thousand rupees, fell to 43 per cent of total home sales in 2021 from 48 per cent the previous year, while the share of units over 75 lakhs rose to 31 per cent from 25 per cent. percent, according to PropTiger real estate consultant.
In a report called “Real Insight Residential – Annual Round-up 2021,” PropTiger said home sales grew 13 percent in 2021 to 2,05,936 units from 1,82,639 units last year.
According to the data, 43 per cent of all home sales in the eight major housing markets in India were within the price of Rs 45 lakh.
The unit price of 45 lakh-75 lakh unit units rose to 27 per cent in 2021 from 26 per cent the previous year, and the share of 75 lakh to 1 million euro apartments rose to 11 per cent. from 9 percent.
The share of units over Rs 1 million rose to 20 per cent from 16 per cent. The eight main cities are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai and Thane) and Pune.
PropTiger said political support from the government will attract cheap housing in India in 2021.
According to Article 80EEA of the Income Tax Act, India is offering an additional 1.50 lakh tax deduction to India for first time buyers if the unit is worth 45 lakh. The borrower can also apply for the Pradhan Mantri Awas Yojana Program (PMAY) government grant.
“In addition to government subsidies, low interest rates on home loans have also been a major driver of home sales in the country in 2021, although the economy has been slowly recovering from the second wave of the pandemic,” he said. Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com and Makaan.com.
“We expect more activity in the housing market in 2022, especially in the affordable housing segment, at the end of the deadlines for the use of government subsidies,” he added.
As the cheap housing segment is crucial for the overall growth of India’s housing sector, Mr. Agarwala hoped that the government would consider extending these terms to maintain the momentum of recovery in the secondary sector that creates employment in India.
“Central government spending of € 48 billion is a good step towards increasing the supply of affordable housing in both rural and urban areas, which will‘ accelerate the vision for all housing, ’” said Ankita Sood, Head of Research at Housing.com. , PropTiger.com and Makaan.com.
However, Ms Sood said there is a need to increase demand in the segment through tax rebates, stamp duty exemptions and increasing the limits on affordable housing for metro cities to further encourage home buyers.